Golden rules of accounting

Accounting rules needed to do Accounting . Rules of Accounting to record transactions under debit and credit.
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1. G o l d e n rules of Accounting W i t h t h i s rule s we c a n p r e pare a c c o u n t s . T h i s r u l e s t e l l u s w h i c h a c c o u n t i s d e b i ted a n d w h i c h a ccount is c r e d ited i n a t r a n s a ction

2. P e r s o nal Account R e a l Account N o m i n al Account A l l t r a n s a ctions i n a A c c ounting a r e d i v i ded into three t y p e s of A c c ounts . T h e y a r e s h o wn b e low W e t a l k o n e b y o n e i n d e t a i l i n n e x t s l i d e

3. P e r s o n a l Account r e f e r s t o t h a t a c c ount r e p r e sent s a p e r s o n a n d a r t i f i cial p e r s o n . A r t i f i cial p e r s o n m e a n s o r g a nisatio n s , b a n k s . P e r s o n s n a m e s l i k e r a j a , Ramu, N T R , Prabhas e t c ; c o m e u n d e r Personal Account

4. R e a l A c c o u n t r e f e r s t o a s s e t s . A s s e t s like b u i lding s , m a c h i n ery , furniture , c a r s , e q u i pment e t c ; a l l c o m e under R e a l Account

5. N o m i n a l A c c ount r e f e r s t o e x p e n s e s , l o s s e s , p r o f i t s a n d g a i n s . A d v t . E x p e n s e s , O f f ice e x p e n s e s , n e t l o s s , n e t p r o f i t e t c ; c o m e u n d e r n o m i n a l A c c ount

6. D e b i t C r e d i t Personal D e b i t t h e R e c e iver C r e d i t t he G i v e r R e a l D e b i t w h a t c o m e s i n C r e d i t w h a t g o e s o u t N o m i n al Debit a l l expenses & l o s s e s Credit all i n comes & g a i n s G o l d e n r u l e s o f Accounting